TikTok calls the tune for SoftBank’s comeback tour 30 Oct 2019 After WeWork's collapse, disappointing debuts from Uber and Slack, and now Wag, boss Masayoshi Son needs a hit. His bet on the $78 bln Chinese outfit behind the popular video app looks promising. TikTok's troubles in Washington and beyond, though, may derail a chart-topping IPO.
Beyond Meat’s post-lockup slump is just a taster 30 Oct 2019 The vegan-burger maker’s stock fell 22% as a block on insiders’ share sales was lifted. It’s still far above its IPO price, and revenue is rocketing. But it’s a reminder of a simple truth: more supply tends to mean lower prices. Rivals are getting wise to meatless meat’s appeal.
Venezuelan oil-debt fight takes Dadaist turn 29 Oct 2019 The U.S. helped Juan Guaido, the opposition leader it sees as president, by preventing creditors from seizing Citgo, the U.S. refiner that backs defaulted PDVSA bonds. But Guaido still filed a lawsuit to void the debt because the national assembly didn’t approve it. It’s a mess.
Boeing CEO’s mea culpa is too backward looking 29 Oct 2019 Dennis Muilenburg expressed contrition to U.S. senators, and offered a decent account of how Boeing corrected problems that contributed to 346 deaths. He was less reassuring on Boeing’s remaining flaws, such as its cozy relationship with regulators and sub-optimal governance.
Fiat-Peugeot talks look more signal than maneuver 29 Oct 2019 Jilted by Renault, carmaker Fiat Chrysler has revived discussions about a possible $50 bln merger with France’s Peugeot. The savings could be large, but so could political opposition. Even so, it might bring Renault back to the table – and that tie-up may now be easier to seal.
GM lets short-term profit trump no-emissions goal 29 Oct 2019 The U.S. automaker is among several supporting a White House legal push to strip California of its right to regulate tailpipe emissions. If successful, the move will encourage sales of gas-guzzling SUVs and trucks. GM is delaying its non-polluting future as long as possible.
Just Eat bidders distracted by messy sideshow 29 Oct 2019 Prosus and Takeaway.com are competing to buy the UK food delivery group. Now a Just Eat shareholder has accused the former of orchestrating a sale of shares in the latter to depress the value of its bid. The war of words won’t deflect investors from demanding a better offer.
Grubhub’s best hope is a chastened SoftBank 29 Oct 2019 The food-delivery service’s shares crashed 40% as it admitted that competitive pressure is crimping expansion and margins. Grubhub is stuck in an irrational fight – unless SoftBank boss Masayoshi Son, who backs rivals Uber Eats and DoorDash, starts focusing on profit over growth.
BP’s new CEO can give investors a golden hello 29 Oct 2019 The UK oil major had a messy third quarter as it took a charge on recent disposals, and borrowing jumped year-on-year. But it also pays out less of its cash than peers. If incoming boss Bernard Looney can limit future writedowns, he has a simple way to get investors onside.
Commerzbank profit surge buys CEO a little time 29 Oct 2019 The German lender said operating profit was 27% above forecasts in the third quarter. The unexpected release may reassure shareholders that boss Martin Zielke can beat his dismal long-term targets. The challenge will be to keep revenue growing as further ECB easing bites.
Xi Jinping’s crypto call seals stock-picker crown 29 Oct 2019 U.S. President Barack Obama presciently called the post-crisis S&P 500 trough and Donald Trump’s tweets have rattled equities. Mere intimations from China’s leader, though, can really get share prices marching. His blockchain shout-out underscores authoritarian market power.
Nomura revival buys CEO time and Wall Street cred 29 Oct 2019 The battered Japanese bank logged its best quarterly earnings in 17 years. Though a disposal helped, boss Koji Nagai also managed to boost wholesale revenue outside Japan while cutting costs. Combined with a recent share price bounce, he’s earned a bit more shareholder patience.
Super Mario turbo-charges case for Sony breakup 29 Oct 2019 Shares of $45 bln Nintendo have gained 30% this year, partly thanks to a mobile hit featuring its iconic plumber. A richer valuation should also be an inspiration to sprawling rival Sony. Separating its video-games and entertainment business could be one way to narrow the gap.
Great Wall Motor’s lean machines defy China gloom 29 Oct 2019 The carmaker surprised with a 507% increase in third-quarter earnings. The homegrown marque has made the best of an historic slowdown in domestic demand by squeezing suppliers and juicing margins. The market might stay sour, but here’s a recipe for making lemons into lemonade.
Alphabet at risk of middle-aged M&A spread 28 Oct 2019 The Google owner is pumping out profit from internet ads, but growth – while still rapid – is slowing. A reported bid for Fitbit suggests it sees wearable devices as a path to second youth. There’s something to that, though an expanding waistline brings its own pitfalls.
Why are warehouses such hot M&A property? 28 Oct 2019 Industry giant Prologis’s $9.7 bln offer for Liberty is the latest in a slew of such deals. Investors are balking at the 21% premium, but buyers are betting last-mile goods delivery will turn into a gold rush. And M&A bankers get a place to ply their trade in a slowing market.
The Exchange: PBS CEO Paula Kerger 28 Oct 2019 Streaming is upending the media landscape, including public television. Its funding model, local structure and social mandate make broadcaster PBS unlike any other U.S outlet. Its longest-serving boss, Paula Kerger, discusses the challenges and possibilities of the new era.
How to hit a U.S. tech billionaire where it hurts 28 Oct 2019 Jeff Bezos’ Amazon lost out on a $10 bln defense contract in which the president, a frequent Bezos critic, had threatened to intervene. Trump’s wrath has limits – he can’t just break Amazon up, say. But reverse favoritism is a risk when generous procurement budgets are at stake.
Tiffany lacks a sparkling defence strategy 28 Oct 2019 The iconic U.S. jeweller is facing a $14.5 bln bid from LVMH. Staying independent may be tough: Its turnaround has a way to go and faces headwinds in Hong Kong. But Bernard Arnault could go higher, or others may join the fray. Working to boost the price tag is Tiffany’s best bet.
AT&T’s brush with activism creates four winners 28 Oct 2019 The $270 bln U.S. telecom plans to raise margins, add directors and sell assets, and it only took a nudge from Elliott. Both sides look smart, and investors gain too. So do shareholders in other companies: AT&T’s plan to split chair and CEO roles helps them to ask for the same.
Germany’s takeover rules are more S&M than M&A 28 Oct 2019 The biggest European economy’s merger code is supposed to ensure minority investors are protected. In fact, hedge funds exploit the rules to screw sweeteners out of buyers. So long as German deals exhibit this sort of masochism, weak firms will be shielded from necessary surgery.
HSBC unveils mandate for radical shakeup 28 Oct 2019 Interim CEO Noel Quinn scrapped an 11% return on tangible equity target as pre-tax profit fell 12%. Ideas like offloading the French unit are easy, but he and Chairman Mark Tucker will have to think bigger to satisfy shareholders. The bad results make bolder plans easier to sell.
Dormant Samsung rouses Seoul’s other giants 28 Oct 2019 The conglomerate is in disarray: scion Jay Y. Lee is off the board of its $288 bln electronics business, and faces more jail time. Bosses at rival SK Group and autos empire Hyundai, meanwhile, are charging ahead in self-driving tech and other ventures. Korea Inc is due a shakeup.
Tiffany splurge is affordable indulgence for LVMH 28 Oct 2019 Buying the $12 bln purveyor of blue-boxed trinkets would bulk up the French giant’s jewelry business and its U.S. presence. Though pricey, a deal would not stretch Bernard Arnault’s cash-gushing group. It also throws down a diamond-studded gauntlet to rivals Richemont and Kering.
Review: #MeToo comes out of the shadows 25 Oct 2019 The casting couch is a Hollywood trope, but it's real for many women. Yet exposing their mistreatment is daunting, and not just because it requires courage. Two books about the fall of media mogul Harvey Weinstein show the insidious role of legal agreements that muzzle victims.
Macri’s likely defeat a warning to LatAm reformers 25 Oct 2019 Argentines are expected to oust would-be reformer Mauricio Macri in Sunday’s elections, which follow weeks of violent protests across the region. In the post-commodity-boom era, Latin American reformers need to find a new identity that is neither leftist nor too austere.
AB InBev gets dragged back into M&A dilemma 25 Oct 2019 The Budweiser maker said profit in the third quarter was stagnant, and volumes declined in China. That puts pressure on boss Carlos Brito to do more deals. Yet the world’s top brewer is still working off a debt hangover, and the weak performance makes dealmaking harder.
Sickly EU peers give Barclays’ Staley a leg-up 25 Oct 2019 The UK bank reported a 10% return on equity in the third quarter, excluding one-off costs, helped by its investment bank. Traders at the $37 bln lender broadly underperformed Wall Street competitors, but boss Jes Staley can at least grab market from sickly European rivals.
Mike Pence extends prickly olive branch to China 25 Oct 2019 The U.S. vice president blasted Beijing for protectionism, aggression and oppression in a long-delayed speech. He also blamed China for "decoupling" from global norms, but welcomed it to rejoin. The invitation may keep negotiations for a weak trade deal on track, but little else.
Tesla’s China strategy is upside-down 25 Oct 2019 Elon Musk says his Shanghai factory is almost ready, after third-quarter profit surprised on the upside. It will produce more affordable designs, aiming for some 150,000 Model 3 units a year. But China’s mass market is soft. Musk risks overpromising and underdelivering again.